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General Bank Management Marketing Management for Bankers MODULE D. C A I I B. What is Marketing…??. Selling? Advertising? Promotions? Making products available in stores? Maintaining inventories? All of the above, plus much more!. Marketing = ?.

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C a i i b

General Bank Management

Marketing Management for Bankers

MODULE D

C A I I B


What is marketing
What is Marketing…??

  • Selling?

  • Advertising?

  • Promotions?

  • Making products available in stores?

  • Maintaining inventories?

  • All of the above, plus much more!


Marketing
Marketing = ?

  • Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, services to create exchanges that satisfy individual and organizational goals

  • American Marketing Association


Marketing1
Marketing = ?

  • Marketingmanagement is the art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value.


Simple marketing system

Communication

Industry

(a collection

of sellers)

Market

(a collection

of Buyers)

Simple Marketing System

Goods/services

Money

Information


Marketing2
Marketing = ?

  • Marketing is the sum of all activities that take you to a sales outlet. After that sales takes over.

  • Marketing is all about creating a pull, sales is all about push.

  • Marketing is all about managing the four P’s –

    • product

    • price

    • place

    • promotion


The 4 ps 4cs

Place

Product

Price

Promotion

The 4 Ps & 4Cs

Marketing

Mix

Convenience

Customer

Solution

Customer

Cost

Communication


Difference Between - Sales & Marketing ?

  • Salestryingto get the customer to want what thecompanyproduces

  • Marketingtrying toget the company produce what thecustomerwants


Scope what do we market
Scope – What do we market

  • Goods

  • Services

  • Events

  • Experiences

  • Personalities

  • Place

  • Organizations

  • Properties

  • Information

  • Ideas and concepts


Core concepts of marketing
Core Concepts of Marketing

  • Based on :

  • Needs, Wants, Desires / demand

  • Products, Utility, Value & Satisfaction

  • Exchange, Transactions & Relationships

  • Markets, Marketing & Marketers.


Core concepts of marketing1

Marketing &

Marketers

Markets

Needs, wants

demands

Utility, Value &

Satisfaction

Products

Xchange, Transaction

Relationships

Core Concepts of Marketing


Core concepts of marketing2
Core Concepts of Marketing

  • Need – food ( is a must )

  • Want – Pizza, Burger, French fry's ( translation of a need as per our experience )

  • Demand – Burger ( translation of a want as per our willingness and ability to buy )

  • Desire – Have a Burger in a five star hotel


In order to understand marketing let us begin with the marketing triangle

Customers

Company

Competition

In order to understand Marketing let us begin with the Marketing Triangle


Who is a customer
Who is a Customer ??

CUSTOMER IS . . . . .

Anyone who is in the market looking at a product / service for attention, acquisition, use or consumption thatsatisfiesa want or a need


Customer
Customer –

  • CUSTOMER has needs, wants, demands and desires

  • Understanding these needs is starting point of the entire marketing

  • These needs, wants …… arise within a framework or an ecosystem

  • Understanding both the needs and the ecosystem is the starting point of a long term relationship


How do consumers choose among products services
How Do Consumers Choose Among Products & Services?

  • Value - the value or benefits the customers gain from using the product versus the cost of obtaining the product.

  • Satisfaction - Based on a comparison of performance and expectations.

    • Performance > Expectations => Satisfaction

    • Performance < Expectations => Dissatisfaction


Customers problem solution
Customers - Problem Solution

  • As a priority , we must bring to our customers “WHAT THEY NEED”

  • We must be in a position to UNDERSTANDtheir problems

  • Or in a new situation to give them a chance to AVOID the problems


Customer looks for value
Customer looks for Value

  • Value = Benefit / Cost

  • Benefit = Functional Benefit + Emotional Benefit

  • Cost = Monetary Cost + Time Cost + Energy Cost + Psychic Cost


Strategic Marketing

Strategic marketing management is concerned with how we will create value for the customer

Asks two main questions

  • What is the organization’s main activity at a particular time? – Customer Value

  • What are its primary goals and how will these be achieved? – how will this value be delivered


Strategic planning

Strategic Planning is the managerial process of creating and maintaining a fit between the organization’s objectives and resources and the evolving market opportunities.

Also called Strategic Management Process

All organizations have this

Can be Formal or Informal

Strategic Planning



Business strategic planning process
Business Strategic-Planning Process

External environment

(Opportunity &

Threat analysis)

Goal Formulation

BusinessMission

Internal Environment

(Strength/ Weakness analysis)


Strategy formulation
Strategy Formulation

Environmental Analysis

Internal Analysis

Competitor

Customer

Supplier

Regulatory

Social/ Political

Technology Know-How

Manufacturing Know-How

Marketing Know-How

Distribution Know-How

Logistics

Opportunities & Threats

Strength & Weaknesses

Identify opportunity

Identity Core Competencies

Fit internal Competencies with external opportunities

Firm Strategies


The marketing plan
The Marketing Plan

  • A written document that acts as a guidebook of marketing activities for the marketing manager


CONTENTS of MARKETING PLAN

  • Business Mission Statement

  • Objectives

  • Situation Analysis (SWOT)

  • Marketing Strategy

    • Target Market Strategy

    • Marketing Mix

      • Positioning

      • Product

      • Promotion

      • Price

      • Place – Distribution

      • People

      • Process

  • Implementation, Evaluation and Control


Business Mission Statement

Objectives

Situation or SWOT Analysis

Implementation Evaluation, Control

The Marketing Process

Marketing Strategy

Target Market Strategy

Marketing Mix

Place/Distribution

Product

Price

Promotion



Why a product like radio declined and now once again emerging as an entertainment medium
Why a product like radio declined and now once again emerging as an entertainment medium ?


What were the drivers of this change
What Were the Drivers of This Change ? emerging as an entertainment medium ?

  • Technology ?

  • Government policy ?

  • Other media substitutes ?


Why market leaders suffered
Why Market Leaders Suffered ? emerging as an entertainment medium ?

  • HMT vs. Titan

  • HLL vs. Nirma

  • Bajaj vs. Honda

  • Dot.com boom, then bust and now resurgence

  • Market leadership today cannot be taken for granted.New and more efficient companies are able to upstage leaders in a much shorter period.


Factors Influencing Company’s Marketing Strategy emerging as an entertainment medium ?


External Environment emerging as an entertainment medium ? is not controllable

Social

Change

Ever-Changing

Marketplace

Demographics

Economic

Conditions

Product

Distribution

Promotion

Price

Competition

Target Market

Political &

Legal Factors

Technology

Environmental

Scanning

External Marketing Environment

Physical / Natural


The macro-environment emerging as an entertainment medium ?

  • is the assessment of the external forces that act upon the firm and its customers, that create threats & opportunities


P r o d u c t emerging as an entertainment medium ?


Product is . . . . . emerging as an entertainment medium ?

Anything that is offered to the market for attention, acquisition, use or consumption that satisfies a want or a need


Types of products

PRODUCTS emerging as an entertainment medium ?

Consumer

Products

Services

Industrial

Products

Types of Products


Product items lines and mixes

Product Item emerging as an entertainment medium ?

A specific version of a product that can be designated as a distinct offering among an organization’s products.

Product Line

A group of closely-related product items.

Product Mix

All products that an organization sells.

Product Items, Lines, and Mixes


Product mix
Product Mix emerging as an entertainment medium ?

  • Width – how many product lines a company has

  • Length – how many products are there in a product line

  • Depth – how many variants of each product exist within a product line

  • Consistency – how closely related the product lines are in end use


Gillette s product lines mix

Width of the product mix emerging as an entertainment medium ?

Blades and Writing

razors Toiletries instruments Lighters

Fusion – 5 blade

Mach 3 Turbo

Mach 3 Series Paper Mate Cricket

Sensor Adorn Flair S.T. Dupont

Trac II Toni S.T. Dupont Atra Right Guard

Swivel Silkience

Double-Edge Soft and Dri

Lady Gillette Foamy

Super Speed Dry Look

Twin Injector Dry Idea

Techmatic Brush Plus

Depth of the product lines

Gillette’s Product Lines & Mix


What is a service defining the essence
What is a Service? Defining the Essence emerging as an entertainment medium ?

  • An act or performance offered by one party to another (performances are intangible, but may involve use of physical products)

  • An economic activity that does not result in ownership

  • A process that creates benefits by facilitating a desired change in customers themselves, or their physical possessions, or intangible assets


Some industries service sector

Banking, stock broking emerging as an entertainment medium ?

Lodging

Restaurants, bars, catering

Insurance

News and entertainment

Transportation (freight and passenger)

Health care

Education

Wholesaling and retailing

Laundries, dry-cleaning

Repair and maintenance

Professional (e.g., law, architecture, consulting)

Some Industries - Service Sector


Classification of services
Classification of Services emerging as an entertainment medium ?

Pure Intangible

Service

Banking

Good Transportation

Major Service with

Minor Product

Business Hotels

Product = Service

Computers

Major Product with

Minor Services

Materials / Components

Pure Tangible Product


Major Characteristic of Services emerging as an entertainment medium ?

  • Intangibility– Services are intangibility cannot be seen, tasted, felt, heard or smelled before purchase.

  • Inseparability - Services are produced and consumed simultaneously.

  • Variability or Heterogeneity – Services are highly variable

  • Perishability – Services cannot be stored.

  • Non Ownership - Services are rendered but there is no transfer of title


The marketing mix
The Marketing Mix emerging as an entertainment medium ?

  • The conventional view of the marketing mix consisted of four components (4 Ps): Product, Price, Place/ distribution and Promotion.

  • Generally acknowledged that this is too narrow today; now includes ,Processes, Productivity [technology ]People [employees], Physical evidence

  • Marketers today are focused on virtually all aspects of the firm’s operations that have the potential to affect the relationship with customers.


The 8ps of integrated service management vs the traditional 4ps
The “8Ps” of Integrated Service Management vs. the Traditional “4Ps”

  • Product elements

  • Place, cyberspace, and time

  • Process

  • Productivity and quality

  • People

  • Promotion and education

  • Physical evidence

  • Price and other user outlays


The give and get of marketing
The Give and Get of Marketing Traditional “4Ps”


Great words on marketing
Great Words on Marketing Traditional “4Ps”

  • “The purpose of a company is ‘to create a customer…The only profit center is the customer.’”

  • “A business has two—and only two—basic functions: marketing and innovation. Marketing and innovation produce results: all the rest are costs.”

  • “The aim of marketing is to make selling unnecessary.”

  • “While great devices are invented in the Laboratory, great products are invented in the Marketing department.”

  • “Marketing is too important to be left to the marketing department.”


Drivers of customer satisfaction
Drivers of Customer Satisfaction Traditional “4Ps”

  • Many aspects of the firm’s value proposition contribute to customer satisfaction:

    • The core product or service offered

    • Support services and systems

    • The technical performance of the firm

    • Interaction with the firm and it employees

    • The emotional connection with customers

  • Ability to add value and to differentiate as a firm focuses more on the top levels


Marketers and markets
Marketers and Markets Traditional “4Ps”

  • Marketers are focused on stimulating exchanges with customers who make up markets – B2C or B2B.

  • The market is comprised of people who play a series of roles: decision makers, consumers, purchasers, and influencers.

  • It is absolutely essential that marketers have a detailed understanding of consumers, their needs and wants.

  • Much happens before and after the sale to affect customer satisfaction


Stages of customer interaction
Stages of Customer Interaction Traditional “4Ps”


What changed in marketing

Organize by product units Traditional “4Ps”

Focus on profitable transactions

Look primarily at financial scorecard

Focus on shareholders

Marketing does the marketing

Build brands through advertising

Focus on customer acquisition

No customer satisfaction measurement

Over-promise, under-deliver

What Changed in Marketing…

New Economy

Old Economy

  • Organize by customer segments

  • Focus on customer lifetime value

  • Look also at marketing scorecard

  • Focus on stakeholders

  • Everyone does the marketing

  • Build brands through performance

  • Focus on customer retention

  • Measure customer satisfaction and retention rate

  • Under-promise, over-deliver


Are Banks truly Traditional “4Ps”

marketing-savvy and customer - centric?


  • Myth 1 Traditional “4Ps” – The larger the range of products, the more customer-centric I am.

  • Mythbuster – The range of products has

  • emerged from being

  • competition-centric.


  • Myth 2 Traditional “4Ps” – Better technology (read CRM) leads to

  • better customer service.

  • Mythbuster – Technology

  • alone does not deliver,

  • helps people do.


  • Myth 3 Traditional “4Ps” – Launch a product and the customer will start

  • using instantly.

  • - Give a customer a card and he will learn how to play

  • with it immediately

  • Mythbuster – Customers need

  • To be educated too…


  • Myth 4 Traditional “4Ps” – The only way to get a customer is from

  • competition.

  • Mythbuster – Customers are not only present where competition is.


  • Myth 5 Traditional “4Ps” – Just advertise and - You will sell.

  • Mythbuster – Advertising will only sell,

  • Not retain customers.


Myth 6 Traditional “4Ps” – No difference between marketing & selling

  • Mythbuster – “Selling focuses on the needs of the seller; marketing on the needs of the buyer.


Myth 7 Traditional “4Ps” – In the absence of relationships ‘trust’ builds financial brands

  • Mythbuster – Trust is not a differentiator at all…it is the very minimum that the customer expects!!


So what will the differentiators be
So what will the differentiators be : Traditional “4Ps”

  • Technology ?

  • Brand ?


The real differentiator of Traditional “4Ps”

customer – centricity in a commoditised world of financial products -

Customer Service !


  • Thank You Traditional “4Ps”

  • [email protected]


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